Biggest price rise in over a year and a half

Posted on 21-09-2020 by F. Geurtsen

House prices continue to rise despite the corona crisis. This is according to research on the price development of existing private owner-occupied houses in the Netherlands by CBS and the Land Registry. Existing owner-occupied houses were 8.2% more expensive in August than in August 2019. This is the biggest price rise in over a year and a half.

The figures confirm the trend seen by the Dutch Association of Estate Agents (NVM). NVM reported last July that the average price of owner-occupied houses reached €335,000 in the second quarter, up a whopping 8.8% from a year earlier.

The number of sales fell by almost 4% compared to that period in 2019, according to NVM. Interestingly, the number of houses for sale fell by almost 23%, according to estate agents. A house was for sale for an average of 28 days in the second quarter. The Land Registry recorded 19,034 transactions in August. That was a drop of almost 3% compared to a year earlier.

Price rises have made it increasingly difficult for first-time buyers to buy a house. The government therefore wants to set the transfer tax on homes for buyers under 35 years of age at 0% from 2021, up from 2% now. According to critics, scrapping the transfer tax for first-time buyers will actually lead to further driving up prices. The NVM called the effect of the measure "minimal" and possibly even "counterproductive". Building, building and building again still seems to be the only solution to stabilise the housing market.

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